Financial Statements
This document is an extract from Swiss Re's Financial Report 2023.
The complete Financial Report 2023 is available at https://reports.swissre.com/2023/.
Swiss Re| Financial Report 2023
Financial Statements
Notes to the | ||
Group financial statements | 148 | |
Note 1 | Organisation and | |
summary of significant | ||
accounting policies | 148 | |
Note 2 | Information on | |
business segments | 157 | |
Note 3 | Insurance information | 169 |
Note 4 | Premiums written | 173 |
Note 5 | Unpaid claims and claim | |
adjustment expenses | 174 | |
Note 6 | Deferred acquisition costs | |
(DAC) and acquired present | ||
value of future profits (PVFP) | 189 | |
Note 7 | Investments | 190 |
Note 8 | Fair value disclosures | 200 |
Note 9 | Derivative | |
financial instruments | 208 | |
Note 10 | Disposals | 213 |
Note 11 | Debt and contingent | |
capital instruments | 214 | |
Note 12 | Leases | 216 |
Note 13 | Earnings per share | 217 |
Note 14 | Income taxes | 218 |
Note 15 | Benefit plans | 222 |
Note 16 | Share-based payments | 228 |
Note 17 | Compensation, participations | |
and loans of members of | ||
governing bodies | 230 | |
Note 18 | Related parties | 231 |
Note 19 | Commitments and | |
contingent liabilities | 232 | |
Note 20 | Significant subsidiaries | |
and equity investees | 233 | |
Note 21 | Variable interest entities | 236 |
Report of the statutory auditor | 240 | |
Group financial years 2014-2023 | 246 |
Swiss Re Ltd | 248 |
Annual Report | 248 |
Income statement | 249 |
Balance sheet | 250 |
Notes | 252 |
Proposal for allocation of | |
disposable profit | 258 |
Report of the statutory auditor | 259 |
Swiss Re| Financial Report 2023
Financial statements
Income statement
For the years ended 31 December
USD millions | Note | 2022 | 2023 |
Revenues | |||
Gross premiums written | 4 | 47 889 | 49 954 |
Net premiums written | 4 | 43 917 | 45 095 |
Change in unearned premiums | -1 049 | -339 | |
Premiums earned | 3 | 42 868 | 44 756 |
Fee income from policyholders | 3 | 250 | 247 |
Net investment income - non-participating business1 | 7 | 2 869 | 3 995 |
Net realised investment gains/losses - non-participating business2 | 7 | -3 | 719 |
Net investment result - unit-linked business | 7 | -43 | 21 |
Other revenues | 57 | 62 | |
Total revenues | 45 998 | 49 800 | |
Expenses | |||
Claims and claim adjustment expenses3 | 3 | -19 607 | -18 646 |
Life and health benefits3 | 3 | -13 721 | -13 695 |
Return credited to policyholders | -280 | -364 | |
Acquisition costs | 3 | -7 800 | -8 364 |
Operating expenses | -3 369 | -3 737 | |
Total expenses before interest expenses | -44 777 | -44 806 | |
Income before interest and income tax expense | 1 221 | 4 994 | |
Interest expenses | -570 | -556 | |
Income before income tax expense | 651 | 4 438 | |
Income tax expense | 14 | -171 | -1 210 |
Net income before attribution of non-controlling interests | 480 | 3 228 | |
Income/loss attributable to non-controlling interests | -8 | -14 | |
Net income attributable to common shareholders | 472 | 3 214 | |
Earnings per share in USD | |||
Basic | 13 | 1.63 | 11.09 |
Diluted | 13 | 1.60 | 10.49 |
Earnings per share in CHF4 | |||
Basic | 13 | 1.63 | 9.94 |
Diluted | 13 | 1.60 | 9.40 |
- Total impairments for the years ended 31 December of USD 18 million in 2022 and nil in 2023, respectively, were fully recognised in earnings.
2 Total impairments for the years ended 31 December of USD 70 million in 2022 and nil in 2023, respectively, were fully recognised in earnings.
3 The Group has revised the presentation of the medical business of Elips Versicherungen AG and starting 2023 reports it under claims and claim adjustment expenses. Comparative information was adjusted accordingly.
4 The translation from USD to CHF is shown for informational purposes only and has been calculated using the Group's average exchange rates.
The accompanying notes are an integral part of the Group financial statements.
140 | Swiss Re | Financial Report 2023 |
Financial statements
Statement of comprehensive income
For the years ended 31 December
USD millions | 2022 | 2023 |
Net income before attribution of non-controlling interests | 480 | 3 228 |
Other comprehensive income, net of tax: | ||
Change in net unrealised investment gains/losses | -9 736 | 2 225 |
Change in other-than-temporary impairment | -2 | |
Change in cash flow hedges | 10 | |
Change in foreign currency translation | 68 | -263 |
Change in adjustment for pension benefits | 124 | -27 |
Change in credit risk of financial liabilities at fair value option | -1 | -1 |
Other comprehensive income/loss attributable to non-controlling interests | -7 | 25 |
Total comprehensive income/loss before attribution of non-controlling interests | -9 074 | 5 197 |
Comprehensive income/loss attributable to non-controlling interests | -1 | -39 |
Total comprehensive income/loss attributable to common shareholders | -9 075 | 5 158 |
Reclassification out of accumulated other comprehensive income
For the years ended 31 December
Net unrealised | Other-than- | Foreign | Adjustment | Credit risk of | Accumulated other | ||
2022 | investment | temporary | Cash flow | currency | for pension | financial liabilities at | comprehensive |
USD millions | gains/losses1 | impairment1 | hedges1 | translation1, 2 | benefits3 | fair value option | income |
Balance as of 1 January | 2 809 | -6 | 0 | -6 216 | -549 | 4 | -3 958 |
Change during the period | -13 429 | -2 | 206 | 132 | -1 | -13 094 | |
Amounts reclassified out of accumulated other | |||||||
comprehensive income | 1 197 | -5 | 25 | 1 217 | |||
Tax | 2 496 | -133 | -33 | 2 330 | |||
Balance as of period end | -6 927 | -8 | 0 | -6 148 | -425 | 3 | -13 505 |
Net unrealised | Other-than- | Foreign | Adjustment | Credit risk of | Accumulated other | ||
2023 | investment | temporary | Cash flow | currency | for pension | financial liabilities at | comprehensive |
USD millions | gains/losses1 | impairment1 | hedges1 | translation1, 2 | benefits3 | fair value option | income |
Balance as of 1 January | -6 927 | -8 | 0 | -6 148 | -425 | 3 | -13 505 |
Impact of ASC 3264 | 25 | 8 | 33 | ||||
Change during the period | 2 920 | 13 | -340 | -44 | -2 | 2 547 | |
Amounts reclassified out of accumulated other | |||||||
comprehensive income | -123 | -6 | 3 | -126 | |||
Tax | -572 | -3 | 83 | 14 | 1 | -477 | |
Balance as of period end | -4 677 | 0 | 10 | -6 411 | -452 | 2 | -11 528 |
- Reclassification adjustment included in net income is presented in "Net realised investment gains/losses - non-participating business".
- Reclassification adjustment is limited to translation gains and losses realised upon sale or upon complete or substantially complete liquidation of an investment in a foreign entity.
3 Reclassification adjustment included in net income is presented in "Operating expenses".
4 Impact of ASC 326 "Financial Instruments - Credit Losses". Please refer to Note 1 "Organisation and summary of significant accounting policies" for more details.
The accompanying notes are an integral part of the Group financial statements.
Swiss Re | Financial Report 2023 | 141 |
Financial statements
Balance sheet
Assets
As of 31 December
USD millions | Note | 2022 | 2023 |
Investments | 7, 8, 9 | ||
Fixed income securities: | |||
Available-for-sale (including 12 355 in 2022 and 12 996 in 2023 subject to securities | |||
lending and repurchase agreements) (allowance for credit losses of 39 in 2023, | |||
amortised cost: 2022: 82 638; 2023: 82 145) | 74 089 | 76 207 | |
Trading (including 143 in 2022 and 119 in 2023 subject to securities | |||
lending and repurchase agreements) | 484 | 1 005 | |
Equity securities at fair value through earnings (including 12 in 2022 and 0 in 2023 | |||
subject to securities lending and repurchase agreements) | 2 114 | 156 | |
Policy loans, mortgages and other loans, net of allowance for credit losses of 36 in 2023 | 4 343 | 5 034 | |
Investment real estate | 2 931 | 2 905 | |
Short-term investments (including 1 465 in 2022 and 2 339 in 2023 | |||
subject to securities lending and repurchase agreements) | 8 907 | 9 931 | |
Other invested assets, net of allowance for credit losses of 1 in 2023 | 8 794 | 11 510 | |
Investments for unit-linked business (equity securities at fair value through earnings) | 330 | 325 | |
Total investments | 101 992 | 107 073 | |
Cash and cash equivalents (including 421 in 2022 and 1 191 in 2023 subject to securities lending, | |||
and 5 in 2022 and 5 in 2023 backing unit-linked contracts) | 4 077 | 4 583 | |
Accrued investment income | 684 | 795 | |
Premiums and other receivables, net of allowance for credit losses of 71 in 2022 and 92 in 2023 | 18 145 | 19 077 | |
Reinsurance recoverable on unpaid claims and policy benefits, net of allowance for credit losses of 31 in 2022 | |||
and 38 in 2023 | 6 507 | 6 104 | |
Funds held by ceding companies, net of allowance for credit losses of 11 in 2023 | 13 929 | 16 178 | |
Deferred acquisition costs | 6 | 8 121 | 8 151 |
Acquired present value of future profits | 6 | 794 | 724 |
Goodwill | 3 863 | 3 978 | |
Income taxes recoverable | 356 | 530 | |
Deferred tax assets | 14 | 8 284 | 7 399 |
Other assets | 3 924 | 4 984 | |
Total assets | 170 676 | 179 576 |
The accompanying notes are an integral part of the Group financial statements.
142 | Swiss Re | Financial Report 2023 |
Financial statements
Liabilities and Equity
As of 31 December
USD millions | Note | 2022 | 2023 |
Liabilities | |||
Unpaid claims and claim adjustment expenses | 5 | 85 418 | 87 513 |
Liabilities for life and health policy benefits | 20 925 | 20 624 | |
Policyholder account balances | 4 850 | 4 775 | |
Unearned premiums | 14 747 | 15 488 | |
Funds held under reinsurance treaties | 6 921 | 8 460 | |
Reinsurance balances payable | 1 837 | 2 733 | |
Income taxes payable | 254 | 305 | |
Deferred and other non-current tax liabilities | 14 | 6 011 | 6 415 |
Short-term debt | 11 | 786 | 1 291 |
Accrued expenses and other liabilities | 5 866 | 7 075 | |
Long-term debt | 11 | 10 252 | 8 526 |
Total liabilities | 157 867 | 163 205 | |
Equity | |||
Common shares, CHF 0.10 par value | |||
2022: 317 497 306; 2023: 317 497 306 shares authorised and issued | 30 | 30 | |
Additional paid-in capital | 293 | 378 | |
Treasury shares, net of tax | -1 398 | -1 282 | |
Accumulated other comprehensive income: | |||
Net unrealised investment gains/losses, net of tax | -6 927 | -4 677 | |
Other-than-temporary impairment, net of tax | -8 | ||
Cash flow hedges, net of tax | 10 | ||
Foreign currency translation, net of tax | -6 148 | -6 411 | |
Adjustment for pension and other post-retirement benefits, net of tax | -425 | -452 | |
Credit risk of financial liabilities at fair value option, net of tax | 3 | 2 | |
Total accumulated other comprehensive income | -13 505 | -11 528 | |
Retained earnings | 27 279 | 28 548 | |
Shareholders' equity | 12 699 | 16 146 | |
Non-controlling interests | 110 | 225 | |
Total equity | 12 809 | 16 371 | |
Total liabilities and equity | 170 676 | 179 576 |
The accompanying notes are an integral part of the Group financial statements.
Swiss Re | Financial Report 2023 | 143 |
Financial statements
Statement of shareholders' equity
For the years ended 31 December
USD millions | 2022 | 2023 |
Common shares | ||
Balance as of 1 January | 30 | 30 |
Balance as of period end | 30 | 30 |
Additional paid-in capital | ||
Balance as of 1 January | 266 | 293 |
Share-based compensation | 13 | 51 |
Realised gains/losses on treasury shares | 14 | 34 |
Balance as of period end | 293 | 378 |
Treasury shares, net of tax | ||
Balance as of 1 January | -1 402 | -1 398 |
Purchase of treasury shares | -44 | -8 |
Issuance of treasury shares, including share-based compensation to employees | 48 | 124 |
Balance as of period end | -1 398 | -1 282 |
Net unrealised investment gains/losses, net of tax | ||
Balance as of 1 January | 2 809 | -6 927 |
Impact of ASC 3261 | 25 | |
Changes during the period | -9 736 | 2 225 |
Balance as of period end | -6 927 | -4 677 |
Other-than-temporary impairment, net of tax | ||
Balance as of 1 January | -6 | -8 |
Impact of ASC 3261 | 8 | |
Changes during the period | -2 | |
Balance as of period end | -8 | 0 |
Cash flow hedges, net of tax | ||
Balance as of 1 January | 0 | 0 |
Changes during the period | 10 | |
Balance as of period end | 0 | 10 |
Foreign currency translation, net of tax | ||
Balance as of 1 January | -6 216 | -6 148 |
Changes during the period | 68 | -263 |
Balance as of period end | -6 148 | -6 411 |
Adjustment for pension and other post-retirement benefits, net of tax | ||
Balance as of 1 January | -549 | -425 |
Changes during the period | 124 | -27 |
Balance as of period end | -425 | -452 |
The accompanying notes are an integral part of the Group financial statements.
144 | Swiss Re | Financial Report 2023 |
Financial statements
USD millions | 2022 | 2023 |
Credit risk of financial liabilities at fair value option, net of tax | ||
Balance as of 1 January | 4 | 3 |
Changes during the period | -1 | -1 |
Balance as of period end | 3 | 2 |
Retained earnings | ||
Balance as of 1 January | 28 632 | 27 279 |
Net income after attribution of non-controlling interests | 472 | 3 214 |
Dividends on common shares | -1 825 | -1 850 |
Impact of ASC 3261 | -95 | |
Balance as of period end | 27 279 | 28 548 |
Shareholders' equity | 12 699 | 16 146 |
Non-controlling interests | ||
Balance as of 1 January | 110 | 110 |
Transactions with non-controlling interests | 79 | |
Income/loss attributable to non-controlling interests | 8 | 14 |
Other comprehensive income attributable to non-controlling interests: | ||
Change in net unrealised investment gains/losses | -4 | 8 |
Change in foreign currency translation | -3 | 17 |
Dividends to non-controlling interests | -1 | -3 |
Balance as of period end | 110 | 225 |
Total equity | 12 809 | 16 371 |
- Impact of ASC 326 "Financial Instruments - Credit Losses". Please refer to Note 1 "Organisation and summary of significant accounting policies" for more details.
The accompanying notes are an integral part of the Group financial statements.
Swiss Re | Financial Report 2023 | 145 |
Financial statements
Statement of cash flows
For the years ended 31 December
USD millions | 2022 | 2023 |
Cash flows from operating activities | ||
Net income attributable to common shareholders | 472 | 3 214 |
Add income/loss attributable to non-controlling interests | 8 | 14 |
Adjustments to reconcile net income to net cash provided/used by operating activities: | ||
Depreciation, amortisation and other non-cash items | 425 | -68 |
Net realised investment gains/losses | 67 | -717 |
Income from equity-accounted investees, net of dividends received | 258 | 23 |
Change in: | ||
Technical provisions and other reinsurance assets and liabilities, net | 3 263 | 1 347 |
Funds held by ceding companies and under reinsurance treaties | -1 019 | -701 |
Reinsurance recoverable on unpaid claims and policy benefits | -143 | 203 |
Other assets and liabilities, net | -460 | -185 |
Income taxes payable/recoverable | -248 | 686 |
Derivative financial instruments and collateral, net | 304 | 270 |
Net cash provided/used by operating activities | 2 927 | 4 086 |
Cash flows from investing activities | ||
Fixed income securities: | ||
Sales | 24 088 | 19 912 |
Maturities | 5 447 | 9 836 |
Purchases | -32 393 | -29 305 |
Net purchases/sales/maturities of short-term investments | -590 | -783 |
Equity securities: | ||
Sales | 2 461 | 2 872 |
Purchases | -1 270 | -895 |
Securities purchased/sold under agreement to resell/repurchase, net | 193 | -827 |
Cash paid/received for acquisitions/disposals and reinsurance transactions, net | 22 | -42 |
Net purchases/sales/maturities of other investments | -321 | -1 152 |
Net purchases/sales/maturities of investments held for unit-linked business | 25 | 22 |
Net cash provided/used by investing activities | -2 338 | -362 |
Cash flows from financing activities | ||
Policyholder account balances, unit-linked business: | ||
Deposits | 18 | 5 |
Withdrawals | -66 | -53 |
Issuance/repayment of long-term debt | 1 449 | -710 |
Issuance/repayment of short-term debt | -806 | -818 |
Purchase/sale of treasury shares | -6 | 126 |
Dividends paid to shareholders | -1 825 | -1 850 |
Dividends paid to non-controlling interests | -1 | -3 |
Transactions with non-controlling interests | 79 | |
Net cash provided/used by financing activities | -1 237 | -3 224 |
The accompanying notes are an integral part of the Group financial statements.
146 | Swiss Re | Financial Report 2023 |
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Swiss Re Ltd. published this content on 12 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 March 2024 06:23:08 UTC.